This special report explores the institutionalisation of digital investments – both driven by investment professionals moving into the sector and growing demand from investors themselves.…
The 'Digital Assets in Focus 2020' special report comprises four separate articles listed below, these can be read individually or as a sequence.
By A Paris – The institutionalisation and maturing of the cryptocurrency and digital assets world is taking place – at present this is primarily happening through investment professionals moving from traditional finance and setting up their own cryptocurrency funds. But increased allocations from institutional investors are also expected to follow as the long-term outlook for the sector looks robust, volatility notwithstanding.
Bitfinex, a state-of-the-art digital asset exchange, is leading the way in driving mass institutional participation in the crypto trading market. Through strategic partnerships, Bitfinex has created an institutional calibre offering, providing hedge fund managers with a robust infrastructure to enable them to offer digital asset trading to clients.
Capital inflow into digital assets from active asset managers is expected to increase in the near future. Investor concerns regarding exposure to credit risk from exchange venues are being overcome as a result of new infrastructure developments.
The digital asset space has expanded to include multiple cryptoasset types, blockchains and a variety of centralised and decentralised exchanges – the administrative burden of which has grown exponentially for investors. As larger investors such as asset managers and family offices look to increase their trading activity in the digital space and diversify their portfolio, services provided by third parties to support their efforts are gaining importance.